Energy Conversion Devices Inc (ENER) opened up trading this morning with a gap down to the $33 level. For the last hour it has been steadily rising up from this point. As I said in my earlier post, I have been looking for a good entry point in this company and feel that the near term support of $33 is an ideal area to place an order. The stock has been on a run for several months and it is always hard to take a new position in a stock that has already seen dramatic increases in a stock price. When this happens I have learned to look for short term pullbacks, or a retest of support lines to start new positions. The fear (and potential downside) is that the support will not hold and you could be looking at a very big loss. This is where you need to look back at the fundamentals of the company. There is alot of good news about the future of this company, and the most recent earnings announcement points to several optimistic opportunities to look forward to.
“…Cobasys’ success in winning purchase orders for its proprietary NiMH battery system solutions for the automotive markets is another big plus for our business,” continued Stempel. “Cobasys’ ongoing work in hybrid vehicle prototype development will hopefully lead to more opportunities down the road.” “ECD Ovonics is well positioned to capitalize upon the current government and consumer focus on new sources of energy,” Stempel said. “We’re extremely pleased with the pace of production and shipments at United Solar Ovonic. In the fourth quarter, we manufactured a record level 5.7MW of products with a sales value of $18 million and we’re now running essentially at our rated production capacity of 25MW.” [ more ]
I purchased shares this morning in both the mutual fund and my personal portfolio at an average price of $34.75. DISCLAIMER: I am not a registered investment advisor. The information and trades that I provide here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.